US stocks faced early losses on Thursday, following a surprise rise in consumer prices the day before. However, calming investor concerns, a cooler-than-expected reading on producer prices helped ease the pressure. While futures for major indices like the Dow Jones Industrial Average and S&P 500 slipped slightly, they were off the previous day’s significant decline. Despite this, the Nasdaq 100 remained relatively unchanged in premarket trading.
The bond market also saw activity, with the 10-year Treasury yield hitting its highest level since November after a surge. The Producer Price Index saw a modest increase in March, below economist expectations, but annual growth in producer prices still showed a strong uptick, the fastest in nearly a year. This data contributed to the market readjusting its expectations for Federal Reserve policy, with fewer rate cuts than previously projected.
Amidst concerns about rising oil prices and geopolitical tensions, investors are turning to upcoming corporate earnings reports for momentum. As the market awaits quarterly updates from major banks like JPMorgan, the hope is that strong financial performances will provide a boost to stocks, especially in the face of escalating borrowing costs. With economic data and global events shaping market sentiment, the outlook for stocks remains uncertain but hopeful as corporate earnings season begins in earnest.